RE:Another all time low on the debentures… 89.00WeeGee
You said "Clearly the debenture holders are starting to get nervous around the ability to pay back the balloon payments as the cash dwindles and the losses pile up."
Over the past year the average Canadian bond fund comprised of Govt bonds (Federal and Provinicial), municipal bonds, corporate bonds, high yield bonds, real return bonds, floating rate bonds etc. etc. is down 10-12% The iShares Core Canadian Universal bond fund (XBB) is down 12.27%
The QTRH debentures are down from $100 to $89 or 11% But holders have recieved their interest payments - therefore reducing that 11% decline. So they have performed better than the average.
By your theory the market is "Clearly getting nervous about ALL bondholders ability to pay back the bonds" - since ALL bonds are down - and more than these Debs.
OR coiuld it simply be that ALL bonds are down as interest rates have risen?
You are a fearmongerer of the worst kind.
Cheers
M